The announcement ends a long search to replace Mason, 71,
who agreed to stay on as chairman and chief executive after the
company's succession plans were scuttled last April.

Reuters reported the news earlier Monday.

Mason, who is 71 and had been eager to retire, will stay on
as nonexecutive chairman.

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Fetting joined Legg Mason nearly eight years ago as a
senior adviser focusing on strategy and acquisitions and was
involved in the landmark deal in which the Baltimore-based
asset manager traded its brokerage unit for Citigroup Inc's
<C.N> asset management operation. Legg Mason also recently
acquired hedge fund group Permal, which has been instrumental
in boosting its bottom line.

The company will report earnings on Wednesday.

The appointment will be a bright spot for Legg Mason.
Recently, some of its stock and bond funds suffered from poor
performances.

Some of its money funds run by Western Asset Management
were also found to hold structured investment vehicle (SIV)
debt, which is backed by subprime mortgages.

The company already said it will take a charge of 16 cents
per share related to the mortgage market losses.

Fetting earned his undergraduate degree in economics from
the University of Pennsylvania's Wharton School and a Master of
Business Administration from Harvard.

He was tapped after Legg engaged in a search to find
someone else to replace Mason after James Hirschmann, an
executive at Legg's Western Asset unit, said he did not want
the top job in April.

Hirschmann was promoted to president in 2006, and he was
expected to take the top job when Mason retired.